The British inventors behind Aqua Phase, a technology purchased by Bod Science, will have to wait longer for their initial GB£1 million (A$1.8m) payment after a pharmacokinetic (PK) study assessing the technology's bioavailability credentials ran into delays.
Bod attributed the setback to third-party hold-ups during the "testing and analysing stage," which have pushed the study's completion deadline back to June 30, 2023.
The company announced its plan to acquire Aqua Phase last August for £3m ($5m). The deal's terms require one month of stability data, the manufacture of a technical product batch, and a completed PK study before the initial payment is triggered.
The first two conditions have now been satisfied, leaving the successful completion of the PK study — which will measure the bioavailability of the Active Pharmaceutical Ingredient — as the sole remaining hurdle.
CEO Jo Patterson said last year that standard oral CBD compounds in oil are estimated to achieve only 6% to 8% bioavailability, while Aqua Phase is expected to deliver around 30%.
"We look forward to the successful completion of the PK study in the next few months and the completion of this transformational acquisition," she said in a statement to the ASX.
Patterson described the achievement of non-pharmaceutical GMP stability of Bod's CBD product as an "exciting milestone" for the Aqua Phase technology.
"In terms of stability, it's important to note that not all products containing CBD are created equal and quality control can be a problem," she said. "CBD products can be prone to degradation and oxidation, leading to changes in potency and potentially harmful contaminants.
"Bod is committed to rigorous scientific research and development and dedicated to safe and innovative drug development."
Separately, Bod is set to receive close to $440,000 from finance lender Radium Capital as an advance against its first-half research and development tax rebate.
Radium provides access to R&D funds of up to 80% of the ATO rebate.
Bod said the loan facility will give the company strategic capital while reducing its reliance on dilutionary equity.
